Analysts say Chrysler won’t survive with or without bailout funds

Posted: Dec 10, 2008
Filed under: Chrysler, Daimler, Industry News

Chrysler LLC, which is requesting $7 billion in loans before the end of 2008, is probably in the worst shape out of Detroit’s Big 3. According to CSM Worldwide forecasters, Chrysler does not have the power to survive as standalone automaker with or without government funding.

“It would be best for everyone involved if Chrysler were allowed to gracefully wind down and go away in a controlled, staged process, leaving a Detroit Two” Michael Robinet, CSM vice president of global vehicle forecasts, said at an Automotive Press Association event.

However, CSM’s CEO Craig Cather was quick to point out that the problem is not all Chrysler’s fault. He said the Daimler, which owned Chrysler before Cerberus took over, “handicapped Chrysler and its ability to expand internationally.”

The first $15 billion of the bailout, which should be approved for the auto industry later this week, are expected to be split between GM and Chrysler.

Nardelli – if you’re reading this we suggest you start kissing up to Wagoner or Ghosn for a possible merger.

Source: Detroit News

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  • Timothy
    If Chrysler offered vehicles with mass appeal they wouldn't be in such a dire state. In the mid 90's Chrysler was the innovator of the big three with their cab forward LH cars. The LH cars offered handsome looks, gobs of interior space, fuel efficient motors at a realistic price. Chrysler abandoned that intelligent design philosophy in favor of producing producing gas guzzling, overpowered "hemi's", rear wheel drive and 4000+ curb weights beginning with the 2005 Chrysler 300, Dodge Charger and Magnum. Ok, so these cars sold pretty well at first. Now, nobody wants them! The Magnum was cancelled due to paltry sales. Chrysler's problem lies on backward thinking. Rear wheel drive and big V8's. Possibly the most glaring error in Chrysler's current timeline is the 2009 Challenger. What the f**** were they thinking?!!! Clap out an overweight, overpowered vehicle with 40 year old styling that attains horrible economy. Is this a vehicle for the masses? Hello? This is 2008 not 1969! I believe Damlier is to blame to a degree for Chrysler's downfall. Chrysler had the right idea with it's LH cars in the mid 90's. They really should've adhered to that design philosophy instead of 60's thinking with V8's and rear wheel drive. Toyota and Honda have stayed true to their philosophy: build a quality, modern product that's fuel efficient and people will buy it. it require a "miracle" for Chrysler to stand proud like they did in the 90's.
  • zermatt
    CSM is only saying what Cerberus already knows.

    If Cerberus thought that Chysler was worth anything they would be spending their own money.

    Cerberus knows that it is time to kill Chrysler with a stick. They just want the goverment to do it.
  • Bobmarley
    Exactly zermatt,

    If anyone is going to be paying for their bailout it should be the people that own them (Cerberus)! Not the government!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Is this really that hard to understand?
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